If you opened your 401(k) this week, the bond slice is the part that looks, well, pretty crappy. The 10-year Treasury yield just posted its biggest quarterly jump in three decades, and a broad total bond market index fund lost around 3.5% for the quarter.
Here’s the short answer: keep your bonds.
The loss already happened, and it bought you a higher yield on every dollar you hold from here. The math below shows exactly how long it takes to earn the loss back, and why, at your stage, you’re almost certainly past that point before you’ll ever need the money.
